Vehicle insurance policies have a compulsory
'deductible'- an arrangement whereby the
claim amount up to a pre-specified limit
has to be borne by the policyholder. This
limit is. Rs 50 for two-wheelers, Rs 500
for private cars up to 1,500 cc and Rs 1.000
for private cars over 1,500 cc. So, on a
standard policy, for a Rs 500 two-wheelers
claim, Rs 50 will be paid by the policyholder
and Rs 450 by the insurer.
Insurers offer discounts on premiums to
policy holders who opt for a higher deductible,
There's a catch, though. When you increase
the deductible, you effectively transfer
a greater amount of risk to yourself than
you would otherwise do under the standard
policy, the reward for which is a fall in
premium. As the deductible increases, the
premium falls. It might seem like a strategy
to save premiums, but remember you're taking
on greater risk. It's a cost-benefit trade-off,
and you have to find your comfort level
Premium
Break-up for Two-wheelers
Vehicle Age
up to 1,000 cc
1,000-1,500 cc
over 1,500cc
Risk of theft
and damage to vehicle:
Zone A
Up to 5 years
1.708
1.793
1.879
6-10 years
1.793
1.883
1.973
Over 10years
1.836
1.928
2.020
Zone B
Up to 5 years
1.676
1.760
1.844
6-10 years
1.760
1.848
1.936
Over 10years
1.802
1.892
1.982
Third-party liability
160
175
Occupants
Driver
25
25
25
Passengers
50
50
50
Zone
A: Ahmedabad, Bangalore, Chennai,
Hyderabad, Kolkata, Mumbai, New Delhi and
Pune Zone B: Rest of India Premium in Rs as percentage
of IDV Third-party liability: For
cover up to Rs 6,000 On payment of an additional
Rs 100, this cover can be increased to Rs
7.5 lakh Occupants: Cover of Rs 1
lakh per person Passengers: For four passengers
at Rs 50 per person All figures are in Rs
and as of August 2000
